00:00 Speaker A
Broadcom has announced its authorized a new share repurchase program. It’s up to $10 billion of its common stock through December 31st. According to the company, repurchases under that new program may be made through a variety of methods. Um, and so the shares are getting a little bit of a pop here in the after hours. Um, and this is, you know, it’s not only this, um, share buyback authorization, it is also a message that it is sending to the market here. Um, that maybe things are falling enough that they are now attractive.
00:54 Speaker B
All right, so what is about, can you pull it up? I don’t know what’s down on the year. What is what what’s Broadcom for the year? But I think that’s exactly the point, right? Is that the company is coming out saying this is a good use of our capital. We think this our stock is is now a value play, we’re willing to commit our capital to it and look what’s happening in the after hours, right?
01:21 Speaker A
So here’s what I’m going to tell you. It’s a year to date, it’s down. But I’m going to tell you from its high, which was back in mid-December, like so many stocks were, it is down 38% from the top.
01:42 Speaker B
38, think about that. 38%. So I agree. And this is where I just like we said to Mona. There are plenty of places to find, uh, very good quality stocks. No one’s going to argue about Broadcom. Very good quality stocks that are now on sale.
02:09 Speaker A
Yes. And so, do you think that we’ll be having more companies like this that are coming out and making these sort of announcements potentially?
02:21 Speaker B
I think potentially you’re going to see that during earning season, right? Because that’s usually when, if they’re going to announce it, they’ll announce it. Um, I don’t know how far, uh, I don’t know when Broadcom announces. I don’t know if they’re further down into the month, but, um, I think you’re going to start to see more, especially some of these names that have been that have been really, really beaten up.
02:55 Speaker A
Yeah, most definitely. Um, I actually want to take a look at some of the metrics that we look at on, um, Yahoo Finance.com because I’m curious about the company’s PE ratio, right? The the for the back backward PE, which is right here. I’m going to zoom into it a little bit. Um, it’s 71. So that is still a relatively high, um, PE ratio here. But you can also look at the forward PE and see that it is, um, you know, it is a little bit, uh, more attractive. That is more like a 22 here. And so, if you’re an investor and you’re trying to figure out, okay, I’m looking at this large cap tech stock. Here’s how much the stock is down. Here’s what the PE is now versus where it was. You can see the 22 is down from where it was a year ago, closer to 25 if you’re looking at the forward PE for a company like Broadcom.
04:07 Speaker B
Right, right. And so therefore, it shows that, or it gives you a sense, uh, if you’re looking for places to put some money, places, uh, take advantage of. Stocks that are representing not only better prices, but value. That’s what you’re going to look at.